Budget would increase state aid to schools for the second
straight year, after five years of cuts or freezes. Nearly $300
million in new money would go to improving school safety, technology,
libraries, and reading instruction.

Governor proposes funding single-sex magnet schools.

Students in the state's worst-performing schools would qualify
for state "scholarships" to defray tuition costs at private,
religious, or out-of-district schools.

MICHIGAN

Michigan lawmakers are still seeing huge ripples in the state's
general fund appropriation to schools as a result of their 1993
school-finance overhaul. The $242 million in proposed K-12 spending
represents the portion of the governor's general-fund budget request
targeted for K-12 schools. Another $8.4 billion in fiscal 1997 state
aid to schools would come from earmarked tax revenues.

Decrease in the governor's general-fund request compensates for a
50 percent hike in earmarking of state income taxes for schools. The
state also earmarks property-tax proceeds and lottery income for
schools.

Total state funding for schools would rise by $273 million under
the governor's 1997 budget request.

Governor has proposed a tax credit for employers who provide
apprenticeship training programs as a way to expand school-to-work
efforts.

Nearly $43 million earmarked last year to fund tuition grants for
private, religious, and public school choice would be used to pay for
damage from severe winter storms. Lawmakers last year refused to
authorize the controversial voucher program.

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